Wage Structure and Employment Structure Connection in the Albanian Labor Market

Abstract

The transition of the Albanian economy from planned to market economy, has given a powerful effect to the key variables of the labor market: employment and wages. In this study, we observe the changes in wage and employment structure, for the whole period of transition in the albanian economy, relying on data from the official sources of informatin. In the focus of the analyse are: the changes in different forms of employee compensations other than the base wage, which are an integral part of the wage structure and the employment structure evolution. The main findings of this study, are the observation of: increased wage difference by level of education and occupational position, training, computer skills, etc. and the narrowed difference in recent years, for both sectors, public and private. Considering the connection between wage structure and employment structure, we find that changes in the labor market generally favor the most qualified, who have a direct effect on improving the wage structure. In this study are explored some interesting implications for the economist and policy makers, in order to assess the impact of wage structure and employment structure connection in the Albanian labor market. DOI: 10.5901/ajis.2014.v3n2p171